#CostaRica 🇨🇷 #BDS_Informs: Key Rules for the Payment and Observance of the September 15 Public Holiday

On Tuesday, September 15, 2026, Costa Rica will commemorate 205 years of independence, one of the country's most important civic celebrations and a date that, for labor law purposes, is a mandatory paid public holiday, pursuant to Article 148 of the Labor Code.

The date commemorates the signing of the 1821 Act of Independence in Guatemala, an event that marked the political separation of the Central American provinces from the Kingdom of Spain and their establishment as sovereign states. More than two centuries later, the commemoration remains a fundamental part of Costa Rican national identity, with civic ceremonies, student parades, and various patriotic celebrations held throughout the country.

Companies and employees should be aware of the rules governing the observance and payment of this public holiday.

How Is This Public Holiday Paid?

The applicable payment will depend on each employee's pay arrangement:

• Employees on monthly or biweekly payroll (across all sectors), or weekly payroll (in commercial sectors): pay for the public holiday is already included in their regular compensation. Therefore, if the employee takes the day off, no additional payment is due. If the employee is required to work, one additional day's regular pay must be added to complete the double pay due for that day.
• Employees paid weekly in non-commercial activities: employees must be paid for the days actually worked, plus one regular day's pay for the mandatory paid public holiday. If the employee works on the public holiday, the day must be paid at double time.

With respect to overtime, if an employee works overtime on a mandatory paid public holiday, it must be calculated based on the hourly rate applicable to the public holiday. In other words, overtime must be paid at 50% surcharge on the double-time hourly rate, resulting in double time and a half.

As an Employer, May I Require Employees to Work That Day?

Although Article 149 of the Labor Code prohibits requiring employees to work on public holidays, Articles 150 and 151 establish a number of exceptions for activities whose nature requires work to be performed. In such cases, the company may require employees to work, provided that employees are notified in advance and given reasonable notice.

The observance of public holidays is a non-waivable employee right. Therefore, any agreement intended to substitute another date for the public holiday could give rise to legal liabilities and be deemed null and void. It should also be noted that this year the public holiday falls on Tuesday, September 15, and its observance will not be moved to another date.

Should you have any questions regarding the management, payment, or observance of public holidays, our team would be pleased to assist you. Contact us.